Enterprise resource planning software is languishing as software-as-a-service offerings become more attractive, according to Telsyte's latest research.
Two-thirds of the 229 respondents to Telsyte's Australia Enterprise Applications Study 2015 said they use less than half of the features in their ERP systems.
Telsyte said that traditional ERP systems are often difficult to configure and modify,
which can result in high cost of customisation and long
implementation times. One-third of respondents indicated that they are having to invest time and money on customising their ERP platforms.
Legacy ERP suites must evolve to compete with SaaS applications that offer more flexible usage models and modern interfaces, Telsyte said.
Telsyte senior analyst, Shayum Rahim, said there's opportunity for ERP to evolve through Internet of Things applications, such as sensors placed around a warehouse, as they transform business processes.
“From machine breakdown prevention and real-time error correction in manufacturing processes to real-time inventory control and predictive replenishment in warehousing and distribution, ERP needs to undergo changes to meet the challenges of digital disruption,” Rahim said.
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Telsyte's research also found 56 per cent of organisations are turning to platform-as-a-service to deploy more custom apps in the cloud.
The main benefits cited were cost, ease of use, and to cater to unique business requirements.
“Emerging technologies like the Internet of Things and mobile apps are changing the way CIOs think about enterprise applications,” Rahim added.